Month: December 2016

The Anatomy of a Bad Credit Auto Loan Part 1

When shopping for an auto loan you should know what the banks are looking for in every consumer loan that they approve. If you have some sort of idea of what the banks are looking for then you will have a lot higher chance of getting approved regardless of whether your credit is bad or average.

So here are the terms you will need to know about while shopping for the new or used car of your dreams:

o Fico Score

o Debt to Income =DTI

o Payment to Income=PTI

o Loan to Value= LTV

o Down Payment

o Job time/Job Stability

o Number of Recent Inquires

o Type of Bankruptcy

o Time since Bankruptcy

o Time since Auto loan repossession

o Time on Credit bureau

Fico Score: is a score that the credit bureau assigns to your credit based on an algorithm that takes into consideration a number of things on your credit like: time on credit bureau, number accounts current, number accounts passed due, number of accounts that were passed due, number inquires, number of inquires in the last six months, percentage of revolving available unsecured credit, bankruptcy’s, auto repossessions, foreclosures, collections, or any overall bad credit. There is no set way to predict what your credit score is going to be but there are a few things you can due to increase your credit score. The first thing to due when trying to get a better credit score is to pay your bills. I know it’s a novel idea paying your bills might help your credit but it true. Secondly if you have credit available on your credit cards keep it that way. The main thing that the credit bureaus take into consideration when it comes to your credit cards other then them being current is how much of your credit card credit that you have available on your credit cards. It is a good idea to keep at least half of you total available credit available. It is a good idea to check your credit before you head out to the dealers or apply online. If your score is below 600 expect to fall in to some of the sub prime auto loan programs which means you will probably not qualify for the best of interest rates. If you score is below 520 then you are going to have trouble getting approved through the normal channels at auto dealership, normal bank or website that you can apply for online. If your score is around 600 or even below 520 then your best bet is to apply for auto loan through a website that puts you in touch with the right dealers that use the correct lenders for sub prime credit. One website that specializes in helping consumers with bad credit is

Debt to Income: is a calculation of how much debt that you have going out each month in relation to how much gross income coming in each month. This means if you have 1000 dollars in bills going out each month and 2000 thousand dollars coming in you have a 50% debt to income ratio. The ideal debt to income ratio is below 40% for most banks that finance credit scores below 600. If your score is over 600 then you might be able to get away with a 50% percent debt to income ratio.

Payment to Income: is the amount of payment that you will qualify for based on your income. The ideal payment to income is 15% of your income. If your score is below 600 most sub prime auto loan lenders will not approve you for a loan if you are applying for an auto loan with a payment in excess of 15%. On occasion there are banks that will approve you for auto loans with a 20% payment to income. The question that you need to ask yourself is whether or not you think to can tolerate that high of a payment. In most cases you will feel stretched on payment if you apply for an auto loan with a payment to income higher than 15% and it is not recommended.

Loan to Value: Loan to Value or LTV means the amount of loan that you are applying for in relation to the wholesale or invoice value of the vehicle that you are applying for. The way you figure this out is you need to do some research on the vehicle before you hit the dealerships lot. You can check a few sources online like for used vehicle values or for new vehicle invoices. Once you know what value of the vehicle is then can determine a few things, how much money down you will need or how much negotiating you will have to do. Most auto lenders that deal with bad credit will not want to lend on an auto loan with a LTV higher then 140%. If your score is less that 600 you LTV really needs to be less than 125% that means some good down payment or really good deal on the car that you buying.

Down Payment: There is no magic name for this one you have got to pay to play. In most case with a score less than 600 you are going to need at least 10% percent down payment with a minimum down of 1000 dollars. The more money that you put down the better chance of getting approved you will have.

This is just the tip of the ice berg when it comes to getting approved for an auto loan when you have bad credit. We still need to cover:

o Job time/Job Stability

o Number of Recent Inquires

o Type of Bankruptcy

o Time since Bankruptcy

o Time since Auto loan repossession

o Time on Credit bureau

Are There Really Any Good Make Money Business Opportunities

If you spend any amount of time online searching for opportunities to make money with your own business you quickly realize that it is not as easy as it sounds. You may even find all of the different websites and opportunities confusing. I know I did.

I’ve never been one to fall for the get rich quick hype, but deciding who you can trust and believe is not an easy thing to do on the internet. I received an email the other day around this very subject. In it the writer asked this question to me “are there really any good make money business opportunities?”

Good question. What makes a business opportunity good in the first place? Here is my simple criteria.

1. Does it provide a product that solves a problem. This seems like a very basic question, yet I say it is the most important thing you have to answer. People search online for answers to questions. They are researching to solve problems. If you can do that for them you can make money. A good make money business opportunity has to do this.

2. Can you get back end support. If you am going to start a business on the internet you want the products you represent to have back end support if your customers need it. You want back end support for yourself as well. To make money online without any help is a hard thing to do. This support can come from discussion forums, the merchants themselves, or even a person who are joining starting your business with. The really only important thing is that you can get help.

3. Pricing is important. Any good make money business opportunity has to have products that are priced to sell as well as priced for you to make money selling them. If you over priced you will not sell. If you are underpriced you are leaving money on the table that could be more profit for you. A quick Google search for similar products can tell you right away if the business your are looking at joining or the product you are looking at selling is priced competitively.

4. What kind of marketing materials are available to promote your business and products. To make money online you need visitors to a website. This is called getting traffic. A really good business opportunity is going to provide you with good sales and marketing tools. Websites, graphics, classified ads, solo ads, email marketing materials, print advertising, and so on. If you have to do all of this yourself take a step back and ask yourself if you have the talent to do that.

5. Cost to get started. I put this last because a really good make money business opportunity could be free to start or it could cost thousands of dollars. A McDonalds franchise cost over $1 Million dollars to start, but you are almost guaranteed success. If you do your homework and answer the previous questions than you will know if the cost of the businesses you are looking at starting is worth it to you.

So I guess we have answered the question of are there really any good make money business opportunities. You have to do your research first. Do not take any shortcuts. Take your time and find something that appeals to you. Once you are satisfied you have found it get started and good luck!

Is Your Credit Score Costing You Money?

Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don’t know about your credit could be costing you money.

Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Besides these conveniences, your credit report can mean that you must pay higher deposits and fees for everyday services.

Did you know that your credit history can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner’s insurance, or even keep you from getting hired?

Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if utility companies do agree to connect your service, you’ll need to pay a higher deposit than another customer with good credit who may not need to make any deposit.

The same requirements exist for telephone services. People with a good credit history don’t need to pay deposits for home telephone or cell phone services. When we first got a cell phone with poor credit scores, we had to pay a $300 deposit, for one cell phone. After fixing our credit, we got eight cell phones for our business, with zero deposits.

What many people don’t realize is that good credit enables them to get better insurance rates. High-quality, low-cost home owners’ insurance, auto, and life insurance companies set minimum credit standards for their policy holders; this means that consumers with poor credit have to pay more for less coverage. Many automobile insurance companies now base your monthly premiums on your credit score; these companies offer a 17% discount if your score is over 625 and a 25% discount if your score is over 725. Why? Because according to their studies, people who are careful with their credit are also careful with their property and careful drivers.

Bad credit can cost you a job. More and more employers run an applicant’s credit report and hire the person with better credit, assuming that better credit equals better integrity and character. A friend of mine with a Master’s Degree and a 4.0 grade average did not get hired; she was told her credit score didn’t meet their minimum standard and that they hired another person with less education.

Poor credit scores means you pay more for your home financing. Mortgages cost more in upfront fees and interest rates for those with low credit scores. How much can you save? A mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200. As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month.

Boost your credit score so you can save money on everyday expenses, get high-quality insurance, and the best mortgage financing.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.

Does a Credit Card Debt Elimination and Management Program Legally Reduce Debt?

Credit cards seem wonderful when you first get a new one, don’t they? Immediately, you look at the credit limit, and your brain wants to consider that you actually have that much money to spend. This is the dangerous trap credit companies are counting on.

Before you know it, debt is crushing your finances, and you’re losing sleep.

This is the situation many Americans found themselves in as jobless rates were rising and along with that, interest rates. The money simply wasn’t there to pay the charge cards off, and many balances grew through the tough recession. But, with help from the economic stimulus, you may qualify for a credit card debt elimination and management program.

The concept behind such a program is in the fact that many banks were given stimulus bailout money when our President initiated his plan for economic recovery. In this plan, the money given was to be used to allow the banks to forgive your debt. So, should you use one of these credit card debt elimination and management program companies, you are essentially using their expertise to have large chunks of your debt erased.

Imagine waking up tomorrow, and knowing that over half of your credit card debt was gone. Now, the balances are manageable, and you can finally take steps to rid yourself of them permanently. The process is quite simple. Visit a reputable company site, enter your debt totals, and begin finding out how much forgiveness you qualify for.

You can only seek these forgiveness techniques if you are more than $10,000 in debt, so be sure that you are in need when you apply. Once you have debt forgiven, be sure that the lessons learned stick. Use smart budgeting and spending habits to make sure that as the economy recovers, so do your finances.

Credit card debt elimination and management program companies offer you a second chance. Seize it!

My Credit Report and Rating at Little Or No Cost

There are many things that must come together in order to ensure financial stability for people all over the world. These things must all work before a person is able to get the loan or mortgage that they want, as well as being able to get credit cards and other things. With the economy in recession, being able to ensure these things has become much harder to do and keep track of. People are defaulting on their loans and are not able to pay bills because the pressures from losing a job or having their paychecks decreased. In times like this, it is much more important to be on top of your financial situation.

There are several ways that a person can check to see how they are doing financially. One of the most frequently used ways is to go to the bank and simply ask. Bank managers can give you outlines of where you are and where you should be with your finances, credit cards, loan payments, and much more. People also hire money managers and get their updates from large money management firms. Getting your information from these places can be expensive and may not give you all of the information that you need, however.

One place that you can go to get all of the information on how you are doing financially is a credit report. These reports show you the score of how you are doing with your finances, and there are many places that offer them for free or at a very small cost. This includes things like paying back loans and keeping up with bills and credit card payments. These things are very important, so it is no wonder that they put them in the report. A credit score is literally just a number that rates you on how well you are able to pay things back. Having a high score can ensure you stability and the opportunity to do almost anything with your finances. A bad score can bar you from doing things.

Getting your score for free is actually very easy. There are many companies that are available online that can help you to get your reports and scores at little or no cost to you. They want you to get these things for free because then you will be more likely to choose them as your financial brokers. These reports are very important to review when thinking about your finances.